TO:	All State Administrative Agency Heads All State Administrative Agency Points of Contact
FROM:	C. Suzanne Mencer
	Director
SUBJECT:	Fiscal Year 2004 Urban Areas Security Initiative Grant Program - Mass Transit System Program Application Requirements

As you know, $50 million was provided through the Fiscal Year (FY) 2004 Urban Areas Security Initiative (UASI) Grant Program for critical mass transit systems with heavy rail and commuter rail components. The program provides this funding through the State Administrative Agency (SAA) for ODP programs to the identified mass transit agencies for the protection of critical infrastructure and emergency preparedness activities.

As part of this program, the state is required to pass-through at least 80% of the mass transit funding to the designated mass transit agency. States may use up to 20% of the grant award to complement state assets that will provide direct assistance to that mass transit system in order to prevent, respond to and/or recover from any terrorist attack. Grant budgets will be carefully reviewed to ensure that any funding retained by the state meets this guidance and demonstrates a benefit to the mass transit agency. States are also encouraged to complete the pass-through of funds as quickly as possible in order to facilitate risk mitigation activities at these mass transit agencies.

Questions related to the pass-through requirements of mass transit funds provided as part of the FY 2004 UASI Grant Program may be directed to your ODP Preparedness Officer at (800) 368-6498. Thank you for your continued efforts and cooperation.